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Ministers not protected under labor act

Jennifer Nelson
January 1, 2008
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The 7th Circuit Court of Appeals upheld a District Court's decision to toss out a case because the plaintiffs were not entitled to minimum wage and overtime under the "ministerial exception," although the Circuit Court modified the reason for dismissing the case.

In Steve and Lorrie Schleicher v. The Salvation Army, No. 07-1333, the Schleichers appealed the decision of U.S. District Judge Richard Young of the Southern District of Indiana, Indianapolis Division, to dismiss the case for lack of federal jurisdiction. The Schleichers, ordained ministers of The Salvation Army, brought a suit against The Salvation Army, charging violations of the minimum wage and overtime provisions of the Fair Labor Standards Act.

The Schleichers were administrators of The Salvation Army's Adult Rehabilitation Center in Indianapolis. The job did not pay wages, but they received a stipend of $150 a week. The Rehabilitation Center operated a total of five thrift shops, and most of the thrift shop employees were people down on their luck that The Salvation Army was attempting to redeem.

The couple was later expelled from The Salvation Army for filing the suit.

The 7th Circuit Court of Appeals agreed with Judge Young's decision to dismiss the case, although the case should have been dismissed because of lack of merits in the plaintiff's claims, wrote Judge Richard Posner.

The Schleichers were not employed by the thrift shops they worked at, nor is the Rehabilitation Center an ordinary business enterprise that would be subject to the Fair Labor Standards Act. The Rehabilitation Center is a church, administered by church officials.

The question the Circuit Court had to decide was whether the fact that a church has a commercial dimension brings its ministers under the Fair Labor Standards Act.

It does not, using the Schleichers case as an example, wrote Judge Posner, because the ministers who run the Rehabilitation Center don't wait on customers or manage the day-to-day operations, but instead they manage the religious complex that includes the thrift shops.

Comparing the Schleichers' thrift shops to a Catholic cathedral that runs a gift shop, Judge Posner wrote that the employees of the thrift shop would be subject to the Fair Labor Standards Act, but the bishop who administers the cathedral is not.

"The Salvation Army's Adult Rehabilitation Centers are functional equivalents of cathedrals or monasteries, and the ministers who administer them are therefore engaged in ecclesiastical administration," he wrote.

The best way to decide the case is to presume clerical personnel are not covered by the Fair Labor Standards Act, which can be rebutted by proof a church is fake or the title of "minister" is not appropriately bestowed upon an employee.

The Schleichers are properly ordained ministers in a completely legitimate church, so they are not subject to the Fair Labor Standards Act.

Judge Posner wrote that although Judge Young was correct in dismissing the case, the judge dismissed the case for the wrong reason, creating a harmless error. Judge Young dismissed the case under a rule that allowed the court to toss cases that are not within the jurisdiction of the District Court. The case should have been dismissed because of its merits - that the court would not rule in an ecclesiastical controversy, Judge Posner wrote.
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  1. So that none are misinformed by my posting wihtout a non de plume here, please allow me to state that I am NOT an Indiana licensed attorney, although I am an Indiana resident approved to practice law and represent clients in Indiana's fed court of Nth Dist and before the 7th circuit. I remain licensed in KS, since 1996, no discipline. This must be clarified since the IN court records will reveal that I did sit for and pass the Indiana bar last February. Yet be not confused by the fact that I was so allowed to be tested .... I am not, to be clear in the service of my duty to be absolutely candid about this, I AM NOT a member of the Indiana bar, and might never be so licensed given my unrepented from errors of thought documented in this opinion, at fn2, which likely supports Mr Smith's initial post in this thread: http://caselaw.findlaw.com/us-7th-circuit/1592921.html

  2. When I served the State of Kansas as Deputy AG over Consumer Protection & Antitrust for four years, supervising 20 special agents and assistant attorneys general (back before the IBLE denied me the right to practice law in Indiana for not having the right stuff and pretty much crushed my legal career) we had a saying around the office: Resist the lure of the ring!!! It was a take off on Tolkiem, the idea that absolute power (I signed investigative subpoenas as a judge would in many other contexts, no need to show probable cause)could corrupt absolutely. We feared that we would overreach constitutional limits if not reminded, over and over, to be mindful to not do so. Our approach in so challenging one another was Madisonian, as the following quotes from the Father of our Constitution reveal: The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to abuse. We are right to take alarm at the first experiment upon our liberties. I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations. Liberty may be endangered by the abuse of liberty, but also by the abuse of power. All men having power ought to be mistrusted. -- James Madison, Federalist Papers and other sources: http://www.constitution.org/jm/jm_quotes.htm RESIST THE LURE OF THE RING ALL YE WITH POLITICAL OR JUDICIAL POWER!

  3. My dear Mr Smith, I respect your opinions and much enjoy your posts here. We do differ on our view of the benefits and viability of the American Experiment in Ordered Liberty. While I do agree that it could be better, and that your points in criticism are well taken, Utopia does indeed mean nowhere. I think Madison, Jefferson, Adams and company got it about as good as it gets in a fallen post-Enlightenment social order. That said, a constitution only protects the citizens if it is followed. We currently have a bevy of public officials and judicial agents who believe that their subjectivism, their personal ideology, their elitist fears and concerns and cause celebs trump the constitutions of our forefathers. This is most troubling. More to follow in the next post on that subject.

  4. Yep I am not Bryan Brown. Bryan you appear to be a bigger believer in the Constitution than I am. Were I still a big believer then I might be using my real name like you. Personally, I am no longer a fan of secularism. I favor the confessional state. In religious mattes, it seems to me that social diversity is chaos and conflict, while uniformity is order and peace.... secularism has been imposed by America on other nations now by force and that has not exactly worked out very well.... I think the American historical experiment with disestablishmentarianism is withering on the vine before our eyes..... Since I do not know if that is OK for an officially licensed lawyer to say, I keep the nom de plume.

  5. I am compelled to announce that I am not posting under any Smith monikers here. That said, the post below does have a certain ring to it that sounds familiar to me: http://www.catholicnewworld.com/cnwonline/2014/0907/cardinal.aspx

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